Japan's Cabinet approved Friday a bill to regulate smartphone app stores to promote easier market access for third-party developers, in a move to challenge the duopoly exerted by industry giants Apple Inc. and Google LLC.
The bill would require dominant smartphone operating system providers to allow the entry of third-party app stores and payment systems to increase competition.
Under the new regulations, providers who fail to comply will be slapped with a penalty worth 20 percent of their domestic revenue related to the violation. The penalty can rise to 30 percent if the malpractice continues.
The new penalty is more than three times the penalty under the existing antimonopoly law, which imposes levies worth 6 percent of revenue gained through anti-competitive practices.
"Smartphones have become the foundation of people's lives and economic activities," Hanako Jimi, minister for consumer affairs, said at a press conference. "We will strive to offer more options to consumers while ensuring security."
The bill follows a similar law in the European Union that took effect in March.
The Japanese government seeks to align with the bloc in stepping up regulation of Big Tech firms such as Apple, Google and Amazon.com Inc., which have grown to wield significant influence over digital services around the world.
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